HC dismisses bail plea of TNCSC staff for procuring paddy illegally

CHENNAI: Justice GK Ilanthiraiyan of Madras High Court dismissed the bail applications of four men, including a manager of a Direct Paddy Procurement Center (DPPC), in the Vellore zone of Tamil Nadu Civil Supplies Corporation for allegedly purchasing paddy from farmers at a minimum rate and sold the same at DPPCs at a higher cost.

“The economic offense having deep-rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and considered as grave offenses affecting the economy of the country as a whole and thereby posing a serious threat to the financial health of the country,” Justice Ilanthiraiyan held while dismissing the bail applications of all the four persons involved in this matter.

The judge held that although the arrested accused are incarcerated for some period of time, considering the serious offense committed by them and also the reason there are poor farmers affected by the petitioners, the court is not inclined to grant bail to the petitioners.

The case was filed against Magesh, an officer with DPPC in Vellore, Ganga Krishnan, an owner of a rice mill, Meganathan, a middleman, and his assistant Ramkumar for procuring paddy worth to the tune of Rs 45 crore and acquired a brokerage of Rs 29 lakh from October 2020 to September 2021.

According to Additional Public Prosecutor Damodaran, the accused officer had colluded with the rice mill owner and middlemen to procure paddy from farmers at a lower price fixed by the government. The accused then sold the same paddy to the DPPCs at a higher price in Vellore and Tiruvannamalai districts. The accused's act has caused loss to the farmers as well as the State exchequer, the prosecution submitted.

As the said illegal act of the accused was identified, the police booked a case on the basis of the TNCSC's Vellore zonal manager's complaint. All the accused were arrested and remanded in judicial custody on May 15.